Purple Group (JSE:PPE) ROE %: 11.71% (As of Feb. 2026) — 675% Above Median


JSE:PPE Purple Group Ltd JSE:PPE
71 GF Score
Price R1.63
GF Value R2.18
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Purple Group ROE %?

Purple Group JSE:PPE 71 ROE % is 11.71% as of Feb. 2026, which is 675% above its 10-year median of 1.51. GuruFocus rates JSE:PPE with a GF Score™ of 71/100 and a GF Value™ of R2.18 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 493 Diversified Financial Services companies, Purple Group ranks better than 88.84% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Purple Group's annualized net income for the quarter that ended in Feb. 2026 was R81.3 Mil. Purple Group's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was R694.1 Mil. Therefore, Purple Group's annualized ROE % for the quarter that ended in Feb. 2026 was 11.71%.

The historical rank and industry rank for Purple Group's ROE % or its related term are showing as below:

JSE:PPE' s ROE % Range Over the Past 10 Years
Min: -23.07   Med: 1.51   Max: 12.9
Current: 10.06

During the past 13 years, Purple Group's highest ROE % was 12.90%. The lowest was -23.07%. And the median was 1.51%.

JSE:PPE's ROE % is ranked better than
88.84% of 493 companies
in the Diversified Financial Services industry
Industry Median: 1.65 vs JSE:PPE: 10.06

Purple Group  (JSE:PPE) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Feb. 2026 )
=Net Income/Total Stockholders Equity
=81.296/694.059
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(81.296 / 516.974)*(516.974 / 1277.241)*(1277.241 / 694.059)
=Net Margin %*Asset Turnover*Equity Multiplier
=15.73 %*0.4048*1.8402
=ROA %*Equity Multiplier
=6.37 %*1.8402
=11.71 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Feb. 2026 )
=Net Income/Total Stockholders Equity
=81.296/694.059
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (81.296 / 157.382) * (157.382 / 113.828) * (113.828 / 516.974) * (516.974 / 1277.241) * (1277.241 / 694.059)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5166 * 1.3826 * 22.02 % * 0.4048 * 1.8402
=11.71 %

Note: The net income data used here is two times the semi-annual (Feb. 2026) net income data. The Revenue data used here is two times the semi-annual (Feb. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Purple Group ROE % Related Terms


Purple Group ROE % Historical Data

* Premium members only.

The historical data trend for Purple Group's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Purple Group ROE % Chart

Purple Group Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.90 10.13 -4.74 4.22 9.58

Purple Group Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.77 4.70 10.76 8.36 11.71

JSE:PPE vs VOYA, FRHC: ROE % Comparison

For the Financial Conglomerates subindustry, Purple Group's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Purple Group ROE % vs Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Purple Group's ROE % distribution charts can be found below:

* The bar in red indicates where Purple Group's ROE % falls into.


JSE:PPE
71GF Score
Purple Group Ltd JSE:PPE
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Purple Group ROE % Calculation

Purple Group's annualized ROE % for the fiscal year that ended in Aug. 2025 is calculated as

ROE %=Net Income (A: Aug. 2025 )/( (Total Stockholders Equity (A: Aug. 2024 )+Total Stockholders Equity (A: Aug. 2025 ))/ count )
=61.034/( (602.945+671.506)/ 2 )
=61.034/637.2255
=9.58 %

Purple Group's annualized ROE % for the quarter that ended in Feb. 2026 is calculated as

ROE %=Net Income (Q: Feb. 2026 )/( (Total Stockholders Equity (Q: Aug. 2025 )+Total Stockholders Equity (Q: Feb. 2026 ))/ count )
=81.296/( (671.506+716.612)/ 2 )
=81.296/694.059
=11.71 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Feb. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 11.71% mean?
Purple Group (JSE:PPE) has a ROE % of 11.71% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Purple Group and its competitors. This is 675% above median its historical median of 1.51. According to the industry distribution chart, Purple Group ranks #55 out of 493 companies in the Diversified Financial Services industry, placing it in the top 11.2%.
Is Purple Group's ROE % too high?
Purple Group's current ROE % of 11.71% is 675% above median its 10-year median of 1.51. The Diversified Financial Services industry median ROE % is 1.65. Purple Group's value of 11.71% is 609.7% above this industry median. Based on the distribution chart, Purple Group ranks #55 out of 493 companies in the Diversified Financial Services industry, which is in the top quartile — a strong position relative to peers. Overall, Purple Group has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Purple Group's ROE % compare to VOYA and FRHC?
According to the Diversified Financial Services industry distribution chart, Purple Group ranks #55 out of 493 companies for ROE %. This places Purple Group in the top 11% of its industry — outperforming the majority of peers. The industry median ROE % is 1.65. Purple Group's value of 11.71% is 609.7% above this benchmark. While the company's 10-year median is 1.51 vs. the industry median of 1.65, Purple Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Diversified Financial Services company?
The median ROE % among Diversified Financial Services companies is 1.65, based on 493 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Purple Group's current ROE % of 11.71% is 609.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Purple Group and its competitors. For the Diversified Financial Services industry, the median ROE % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Purple Group's current ROE % is 11.71%, which is 675% above median its own 10-year median of 1.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purple Group stock overvalued right now?
Based on GuruFocus' analysis, Purple Group (JSE:PPE) is currently considered Modestly Undervalued. The stock's GF Value™ is R2.18, compared to a current price of R1.63 — trading 25.2% below its estimated fair value. The current ROE % is 11.71%, which is 675% above median its 10-year median of 1.51 and 609.7% above the Diversified Financial Services industry median of 1.65. Purple Group's overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Purple Group (JSE:PPE), the current ROE % is 11.71% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Purple Group (JSE:PPE) Overvalued in 2026?

Based on GuruFocus' analysis, Purple Group stock appears to be undervalued. The current stock price of R1.63 is trading 25.2% below its estimated GF Value™ of R2.18. GuruFocus considers Purple Group to be Modestly Undervalued.

Key valuation signals for JSE:PPE:

  • ROE %: 11.71% (675% above median its 10-year median of 1.51)
  • GF Value™: R2.18 vs. price of R1.63 (25.2% below fair value)
  • GF Score™: 71/100 with 1 warning sign
  • Industry Position: 609.7% above the Diversified Financial Services median (#55 of 493)

No single metric tells the full story. See the JSE:PPE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Purple Group Business Description

Address 173 Oxford Road, WeWork - Coworking & Office Space 1F, Rosebank, Johannesburg, GT, ZAF, 2196
Purple Group Ltd operates as a financial services company. The company engages in trading, investing, and asset management, and also offers various products and services related to investing and managing portfolios. The Group comprises the following operating segments: Easy Group includes First World Trader Proprietary Limited (FWT or EasyEquities), EasyProperties Proprietary Limited (EasyProperties), EasyDefi Technologies Proprietary Limited (Easy Crypto), and Retirement Investments and Savings for Everyone (RISE or EasyRetire). Head Office and Investments represent fees and dividends earned on investments and fair value adjustments made against them, as well as head office costs.
71GF Score

Get the complete analysis for JSE:PPE

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R1.63
Price
R2.18
GF Value